The current correction in the stock market has brought the Standard and Poor's 500 down over the last two months from 1220 at the end of April 2010 to the end of June close near 1030.
IN PICTURES: 20 Tools For Building Up Your Portfolio

Market Carnage
The correction has been severe, with only 7% of stocks currently trading above their 50-day moving average through June 29, 2010, according to Bespoke Investment Group. The worst hit industry was industrials where only 2% of stocks were trading above their 50-day moving average. Telecom was the winner, with only a third of telecom stocks in this category.

Despite the carnage, and unfortunately for investors, many stocks have much further to fall before reaching the lows hit during the bear market low of March 2009. There are, however, some large capitalization names that have fallen close to or below these levels, and bear some further research.

Reducing Guidance
In mid-June, Nokia (NYSE:NOK) reduced its guidance for the second fiscal quarter, accelerating a decline in stock prices that started in April. The company blamed problems in its devices and services segment, where Nokia is facing tough competition at the high end of the market.

This is a politically correct way of saying that the company is losing the battle for market share in the smart phone area. Nokia now is guiding operating margins to be at the low end of a range of 11% to 13% in 2010. Standard & Poor's promptly changed its ratings outlook on the company from stable to negative, citing "material deterioration of the historically industry leading margins of Nokia's Devices and Services segment."

Monsanto (NYSE:MON) is trading far below the bear market low in March 2009, and closed at $46.22 at the end of June. The stock hasn't been at these levels since early 2007. The company released disappointing earnings last week, and established guidance for 2011 that might have been a little short of what investors wanted.

Boston Scientific (NYSE:BSX) is another stock below the March 2009 levels, and has been on a long-term downtrend for the last 12 months. The company had to issue a recall of one of its products earlier in the year, and reduced guidance after reporting first quarter earnings back in April 2010. Insiders have also been dumping shares all year.

On a positive note, Boston Scientific has moved to get its balance sheet in order and just announced the closing of a new credit line to be used in part to pay off debt maturing in 2011.

Big Losses
Apollo Group
(Nasdaq:APOL) peaked at close to $90 a share back in March 2009 when just about every other stock was hitting a new low every day. Since then the company has lost 50% of its value settling into the low $40 range.

Apollo Group and the rest of the for-profit education industry has become the target of some prominent hedge fund managers over the last few months, with one even dubbing the industry as the "next sub prime." The industry is also heavily dependent on the government for assisting its students for aid, and any news regarding an interruption or more regulation on that aid can cause the stocks to go into freefall.

Bottom Line
Some large capitalization stocks have already fallen below prices found at the nadir of the bear market reached in March 2009, and might represent an opportunity for those investors who have the courage to buy while others flee. However, investors need to carefully research these names before plunging forward as these stocks have company specific issues apart from the general market sell off. (Learn more, see: Adapt To A Bear Market.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    The 3 Best Downside Protection Equity Mutual Funds

    Learn how it is possible to profit in a bear market by owning the correct selection of mutual funds that provide downside protection and opportunity.
  2. Fundamental Analysis

    5 Must-Have Metrics For Value Investors

    Focusing on certain fundamental metrics is the best way for value investors to cash in gains. Here are the most important metrics to know.
  3. Investing News

    Market Outlook: No Bottom Until 2017?

    These investing pros are bearish on the market in 2016. Will there be a bottom in early 2017?
  4. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  5. Your Clients

    How Advisors Can Make the Most Out of Volatility

    Advisors can use market volatility as an opportunity to enhance their value to their clients and grow their practice. Here's how.
  6. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
  7. Stock Analysis

    Analyzing Google's Return on Equity (ROE) (GOOGL)

    Learn about Alphabet's return on equity. How has its ROE changed over time, how does it compare to its peers and what factors are driving ROE for the company?
  8. Investing News

    Is Buffett's Bet on Oil Right for You? (XOM, PSX)

    Oil stocks are getting trounced, but Warren Buffett still likes one of them. Should you follow the leader?
  9. Stock Analysis

    The Top 5 Micro Cap Alternative Energy Stocks for 2016 (AMSC, SLTD)

    Follow a cautious approach when purchasing micro-cap stocks in the alternative energy sector. Learn about five alternative energy micro-caps worth considering.
  10. Stock Analysis

    Analyzing Porter's Five Forces on Under Armour (UA)

    Learn about Under Armour and how it differentiates itself in the competitive athletic apparel industry in light of the Porter's Five Forces Model.
RELATED FAQS
  1. What is the formula for calculating EBITDA?

    When analyzing financial fitness, corporate accountants and investors alike closely examine a company's financial statements ... Read Full Answer >>
  2. How do I calculate the P/E ratio of a company?

    The price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate ... Read Full Answer >>
  3. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Full Answer >>
  4. How do you calculate working capital?

    Working capital represents the difference between a firm’s current assets and current liabilities. The challenge can be determining ... Read Full Answer >>
  5. What is the formula for calculating the current ratio?

    The current ratio is a financial ratio that investors and analysts use to examine the liquidity of a company and its ability ... Read Full Answer >>
  6. What is the formula for calculating earnings per share (EPS)?

    Earnings per share (EPS) is the portion of a company’s profit that is allocated to each outstanding share of common stock, ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center